Circle Targets $624M Raise in NYSE IPO, Eyes $6.7B Valuation

USDC Issuer Aims to Expand Amid Regulatory Tailwinds, Tokenization Push

Circle Internet Group has announced the launch of its long-awaited IPO on the New York Stock Exchange under the ticker “CRCL,” seeking to raise as much as $624 million through the sale of 24 million shares priced between $24 and $26. The offering pegs the company’s fully diluted valuation at $6.71 billion. Of the 24 million shares on offer, 9.6 million will be issued directly by Circle, while existing shareholders, including early backers Accel and General Catalyst, are offloading 14.4 million. Underwriters hold the option to purchase an additional 3.6 million shares, which could increase the total offering to 27.6 million shares.

Financial results for 2024 show mixed performance, with Circle posting a net income of $155.7 million, down from $267.5 million in 2023. Despite the drop in profit, revenue and reserve income rose to $1.68 billion, compared to $1.45 billion the previous year. This financial profile lands amid heightened attention on the stability and growth potential of stablecoin operators, particularly in the context of Circle’s USDC, which currently has over $60 billion in circulation and holds its position as the second-largest stablecoin by market cap. USDC is backed by U.S. dollars and dollar-denominated assets, primarily Treasury securities.

Institutional interest in the IPO is pronounced. BlackRock is expected to acquire approximately 10% of the shares offered, signaling deepening involvement in Circle’s operations beyond its current management of the Circle Reserve Fund, which holds nearly $30 billion in USDC reserves as of April 30, 2024. ARK Investment Management, led by Cathie Wood, has also shown intent to participate, with plans to invest up to $150 million in the offering.

Ahead of the public debut, Circle moved to strengthen its product suite with the acquisition of tokenized asset platform Hashnote. The $100 million deal included $9.9 million in cash and around 2.9 million fully vested common shares, along with an additional 1.8 million shares reserved for Hashnote employees pending vesting. The acquisition aligns with Circle’s strategy to broaden its footprint in tokenized financial services, a sector gaining traction among both fintechs and institutional investors.

IPO proceeds are earmarked for a mix of international growth, regulatory compliance enhancements, and the development of new tokenized financial products. Circle appears to be positioning itself for an increasingly competitive stablecoin landscape, seeking to diversify beyond USDC’s core utility. This IPO also marks Circle’s second attempt to enter public markets, after a previous $9 billion SPAC merger was shelved in 2022.

The timing of the offering reflects broader industry optimism amid what some see as a regulatory shift. President Donald Trump’s administration has adopted a notably more permissive stance toward digital asset regulation, prompting renewed momentum for crypto firms eyeing public listings. Backed by top-tier underwriters including J.P. Morgan, Citigroup, and Goldman Sachs, Circle is entering the public market with both institutional support and a strategic roadmap aimed at tokenizing the next generation of financial infrastructure.

This article has been refined and enhanced by ChatGPT.